Jack Dorsey’s Block Sees Bitcoin Revenue Grow 9% to $2.6B

Jack Dorsey’s payment giant, Block Inc., has reported a notable surge in its Bitcoin revenue for the second quarter of 2024, showcasing a 9% year-over-year growth. According to the company’s latest earnings release, Block’s Bitcoin revenue hit an impressive $2.61 billion during this period, contributing significantly to the total net revenue of $6.16 billion—a commendable 11% increase from the same quarter in 2023.

Excluding Bitcoin revenue, Block’s earnings amounted to $3.54 billion, reflecting a 13% year-over-year rise. The company defines Bitcoin revenue as the total amount of BTC sold to its customers, emphasizing the growing interest and adoption of the cryptocurrency.

Block’s Cash App, a pivotal product in its portfolio, generated $4.13 billion in revenue in the quarter. When excluding Bitcoin transactions, Cash App’s revenue stood at $1.52 billion. Notably, Cash App’s Bitcoin gross profit reached $67 million in Q2 2024, marking a substantial 52% increase compared to the same period last year. This surge in Bitcoin gross profit was primarily driven by the rise in the average price of Bitcoin, which has seen a remarkable 45% increase so far in 2024, trading at $64,777 at the time of this report.

Updating on its Bitcoin reserves, Block reported a $70 million loss from its BTC holdings. As of June 30, 2024, Block held approximately 8,211 BTC on its balance sheet for investment purposes, with a fair value estimated at $515 million. During the quarter, the company acquired around 173 BTC, underscoring its continued investment in cryptocurrency.

Block’s total gross profit saw a 20% year-over-year increase, reaching $2.23 billion. Net income attributable to common shareholders was reported at $195 million for Q2 2024, a significant rise from $102 million in the previous year.

In a strategic move, Block announced in May its intention to raise $2 billion through senior unsecured notes for qualified institutional investors. The company highlighted that, including the net proceeds from this debt offering, it concluded the second quarter of 2024 with $10.3 billion in available liquidity. The funds from this debt sale are earmarked for debt repayment, acquisitions, strategic transactions, capital expenditures, investments, and working capital.

This financial uptick is a testament to Block’s robust business model and its strategic positioning in the fintech and cryptocurrency spaces. The significant growth in Bitcoin revenue and overall financial health reflects the increasing integration and acceptance of digital currencies in mainstream financial systems. As Block continues to innovate and expand, it remains a key player to watch in the evolving landscape of digital finance.